I think the point is, there current business model of catering to low end clientele is NOT working. They need to reinvent themselves and this is what I feel has the most legs of keeping them alive. The margin for high end goods is much more palatable than selling power strips.
The long and the short of it is, RS needs to radically change everything about themselves and go for broke. Trying to do slow changes while holding onto a legacy business will just leave them in a situation like compusa.
Right. So close down the legacy business and start something new. Whether you do so within the existing corporate structure is for the lawyers and investment bankers to decide. Pop quiz: What's Woolworth's these days?
The long and the short of it is, RS needs to radically change everything about themselves and go for broke. Trying to do slow changes while holding onto a legacy business will just leave them in a situation like compusa.